Comvita, the manuka honey products company, has sold its Medihoney brand to US partner Derma Sciences for about $19 million, and will reap a further $11 million selling Derma shares in a takeover offer of the Nasdaq-listed company.
The gross proceeds of the Medihoney deal will amount to US$13.25 million, with a US$5 million earnout payable on sales milestones being achieved, Comvita said in a statement to the NZX. Comvita also owns 1.1 million shares in Derma Sciences, which announced on Jan. 10 that it will be acquired by Nasdaq-listed Integra LifeSciences for US$7 per share by the end of March. That values Comvita's stake at about $11 million, it said.
Derma Sciences already held the exclusive global rights to Medihoney wound care products, and in 2016 paid $2.1 million to Comvita in royalties for the use of the brand and trademarks. Those royalties will stop when the sale is completed.
Comvita will retain the use of the brand to develop its over-the-counter business, particularly for products to treat eczema, while Derma Sciences will hold the regulatory approvals to make products to European and US medical device quality standards. The deal also includes a 10-year honey supply agreement between the two.
The Te Puke-based company told shareholders in October that it expects to post a loss for its first half, ended Dec. 31, after tough trading and significantly lower sales in the first quarter due to the impact of regulatory changes in China. It expects a full-year profit of $17.1 million, entirely produced in the second half. In August 2016, Comvita posted a 15-month profit of $18.5 million after changing its balance date. Comvita previously reported a profit of $17.2 million in the 12 months ended March 31, 2016.
In 2013, Comvita raised about $9 million selling about 2.3 million new shares to Derma at $3.90 apiece, a 3.7 percent discount at the time, giving Derma a 7.3 percent stake while its chief executive Edward Quilty joined the Comvita board. Derma ceased to have a substantial shareholding in Comvita in May 2016, selling down to 4.7 percent of the company at $12.06 per share.
Comvita shares last traded at $8, up 0.9 percent today. They have declined 7.6 percent in the past year, having peaked at a record $12.85 in May 2016, after the company joined the NZX50 Index in April, but falling back over the remainder of the year. Derma shares last traded at US$6.95, up 33 percent this year having disclosed their acquisition by Integra.
| A ShareChat release | January 12, 2017 |
The Minister for Foreign Affairs and Trade, Charlie Flanagan TD, met with New Zealand Foreign Minister, the Honourable Murray McCully at Iveagh House for talks today.
At the meeting the Ministers discussed the opportunities and challenges that have arisen as a result of the UK’s decision to leave the European Union.
The Ministers also spoke about Ireland’s bid to host the Rugby World Cup in 2023 and exchanged national rugby jerseys.
“The Irish bid team regularly refer to New Zealand’s hosting of the World Cup in 2011 as the inspiration for the Irish bid. That tournament was a remarkable success and demonstrated that a country similar in size to Ireland could successfully host this event.”
As Ireland prepares to campaign for a place on the UN Security Council 2020, the Ministers held a useful exchange on New Zealand’s experience as a non-permanent member of the UN Security Council in 2015 and 2016. Minister Flanagan commented:
“Learning from the experiences of a small like-minded state such as New Zealand is very useful to us and is an example of our close cooperation on international issues. I would like to congratulate Minister McCully on New Zealand’s consistent and principled approach as a Security Council member and the significant progress New Zealand made on issues such as tackling the root causes of conflict.”
Minister Flanagan also spoke about the Irish and New Zealand diaspora, noting the key role played by diaspora from both countries.
“There are over 600,000 New Zealanders who can trace their heritage back to Ireland out of a total population of 4.7 million, while nearly 30,000 Irish citizens have spent time working in New Zealand in the last decade alone, including significant numbers of Irish construction workers who contributed to the reconstruction effort since the 2011 Christchurch earthquake.
Developments on the proposed EU – New Zealand Free Trade Agreement were discussed as well as bilateral trade opportunities, where there is much potential to be realised. The Ministers also exchanged views on the situation in the Middle East, the ongoing migration crisis and developments in the Asia Pacific region.
| A MerrionStreet release | January 11, 2017 |
NDO/VNA – President Tran Dai Quang on January 11 received the ambassadors of New Zealand, Timor Leste, Cote d’Ivoire, Rwanda and Slovenia, who presented their credentials.
At a reception for New Zealand Ambassador Wendy Irene Matthews, President Quang expressed his delight at the growing Vietnam-New Zealand ties since the two countries set up their comprehensive partnership in 2009 and issued a joint statement on comprehensive partnership towards strategic partnership in 2015.
He proposed that the two sides should define contents and roadmaps for their strategic partnership, while coordinating in the building of the Vietnam-New Zealand action programme for the new period and organise the sixth session of the Joint Committee for Economic and Trade soon.
He said he hopes the ambassador will contribute to the strengthening of cooperation between ministries, sectors, localities and businesses of both sides to raise two-way trade to US$1.7 billion in 2020.
The State leader also suggested that the New Zealand will support Vietnamese firms in increasing export products to the country, especially farm produce and apparel, while continue assisting Vietnam in sustainable development, climate change response and natural disaster risk management.
Vietnam, as the chair of the APEC Year 2017, hopes for continued cooperation from New Zealand to the success of the event, he said. The President took the occasion to invite New Zealand Prime Minister to visit Vietnam to attend the APEC Summit Week 2017.
On her part, Ambassador Matthews highlighted the high potential for Vietnam and New Zealand to lift up their ties to strategic partnership as they share firm foundation of sound cooperation in politics, economics and defence.
She affirmed that New Zealand hopes to foster collaboration with Vietnam in multilateral frameworks such as the RCEP and TPP.
∩ Auckland-based manufacturer automates processes
∩ Donald Trump's incoming Secretary of State does not oppose TPP
∩ While you were sleeping: Trump hits pharma stocks
∩ Ireland and New Zealand's Foreign Affairs Ministers discuss trade
∩ Traceability key for China trade
∩ Cranes will be defunct for months at Wellington's CentrePort
∩ Ingram Micro’s new owners, HNA Group also snapped up UDC Finance
∩ Rocket Lab’s launch hopes rest on upcoming legislation
The New Zealand Bankers’ Association announced today that the Industrial and Commercial Bank of China (New Zealand) Ltd has joined the association, bringing the total number of member banks to 16.
New Zealand Bankers’ Association chief executive Karen Scott-Howman says: “We are delighted to welcome ICBC to the Bankers’ Association. China is one of New Zealand’s top trading partners. Having Chinese banks here helps take that important relationship to another level.
“ICBC’s participation in the New Zealand banking industry further enhances competition and diversity in the sector”, adds Scott-Howman.
Industrial and Commercial Bank of China (New Zealand) chief executive Qian Hou says: “ICBC’s aim is to strengthen trade opportunities between China and New Zealand, and also to contribute to the New Zealand economy by investing in infrastructure projects.”
ICBC was the first Chinese bank to gain a licence to operate in New Zealand. The bank offers its clients comprehensive corporate and retail services with a focus on boosting the bilateral economic and trade relationship between New Zealand and China.
| A bankers Association release | January 11, 2017 |
The significant labour costs and geographic isolation of the New Zealand manufacturing industry has meant that in order to compete with international players, local manufacturers must look to innovate with new technologies and automate their production processes.To compete with global manufacturing hubs, leading Auckland-based injection moulding company, TCI New Zealand (TCI) were looking for an automated solution that would offer a more cost-effective means of producing its customers’ products. TCI found the solution in Universal Robots (UR) - a global developer and manufacturer of six-axis industrial robots. TCI has now deployed two of Universal’s industrial robotic arms: the UR3 and UR5, to perform labelling and assembly tasks for the company’s EasiYo Yoghurt Maker line, as well as its storage bins.
With a UR robot assisting, several key processes in the manufacture of these products have been automated, relieving employees of repetitive assembly processes and ensuring smooth production flow. The UR3 was the first machine implemented by TCI, with the costs of the robot recouped six months after it was first purchased. Satisfied with this return on investment, TCI then decided to purchase the UR5, with the payback period expected to be under 12 months.
Finding a solutionTCI is one of the largest privately-owned plastic injection moulding companies in New Zealand, based in Avondale, Auckland. For more than 20 years, TCI has manufactured a vast array of products, including building products, components used in instrumentation, navigation, rescue and communications, as well as a range of retail products including homewares, garden products and outdoor furniture for companies across New Zealand and the rest of the world.
“Previously we were paying two employees to work in 12 hour shifts to ensure around-the-clock production of our EasiYo Yoghurt Maker,” said Quintin Fowler, Manager Director at TCI. “If one employee didn’t turn up for work it meant the entire production line would be halted. This wasn’t really financially sustainable for us so we were looking for an automated solution that would guarantee quality assurance and help us to reduce costs.”
During its search for an automation solution, TCI came across UR’s technology at a trade show and made contact via Design Energy, its New Zealand distributor.
“We developed the layout for the production cell and designed and built an appropriate gripper unit for each of the applications,” said Mike Shatford, Managing Director at Design Energy. “TCI then manufactured the machine frames and mounted the various operating units in the relativities we had laid out. Once the machines were completed our technician spent time at TCI writing the robot programs and getting each cell operating to the customers’ requirements.”
“Design Energy were fantastic,” said Fowler. “We were initially considering an off-the-shelf robot from overseas, but I’m glad we were able to find a customisable solution.”
Robots in actionThe UR3 is a compact table-top robot that weighs just 11kg and is capable of handling payloads up to 3kg. The robot has a reach radius of up to 500mm and features 360-degree rotation on all wrist joints and infinite rotation on the end joint. It is ideal for manufacturers such as TCI that have limited factory floor space and a number of intricate processes.
TCI uses the UR3 to help label and place rubber feet on its EasiYo Yoghurt Makers. After a product is moulded, the UR3 aligns and passes the product though a label printer, then it adheres the label to the base of the product. The UR3 then inverts and places the product onto a mandrel, then picks up rubber feet from a bowl feeder and places them on the base of the product.
A pneumatic press is then activated, which presses the feet firmly on the product. The UR3 picks up the finished assembly and places it on a conveyer belt for delivery to the next process. The UR3’s controller provides control for all ancillary equipment including the label printer, bowl feeder, pneumatic press and conveyor.
The success of UR3 gave TCI the confidence to implement a UR5 robot to help assemble several different sizes of storage bins, from 40L up to 112L. The UR5 helps manufacturers automate repetitive and dangerous tasks with payloads up to 5kg and a reach radius of up to 850mm. The UR5 is suitable for collaborative processes such as picking, placing and testing.
“We use the UR5 to put wheels on storage bins and we programmed the robots to be able to place wheels on multiple sized storage bins,” said Fowler. “The robots are so easy-to-program that we can quickly change from one size to the next by pressing just a few buttons.”
Flexible, easy to program and safe to use“Both the UR3 and UR5 went beyond our expectations in what we were looking for in a robot,” Fowler noted. “These robots have the ability to perform the tasks that we need without being overly expensive or difficult to program. They also offered a quick return on our investment.
“UR’s robots can easily move around and fold over on themselves in very tight spaces. The robot can also operate safely alongside our staff without the need for guarding.”
All UR robots can be completely reprogrammed and deployed for other tasks in a matter of minutes. A graphical user interface with a teach function enables an operator to simply grab the robot arm and show it how a movement should be performed. The user-friendly interface then allows staff to drag and drop the routines to do their programming.
“The UR3 and UR5 are very flexible robots. They are very easy to reprogram, which is why we use the UR5 to help assemble all of our storage bins. The robot can be reset to perform different jobs depending on the size of the bin,” said Fowler.
In contrast to traditional industrial robots in the market, UR’s small and lightweight robotic arms are able to work safely alongside staff (subject to prior risk assessment). The robots’ state-of-the-art force limit safety feature automatically stops the robot from operating when its movement is obstructed. The robot will not exert a force greater than the limit specified in the adjustable safety settings.
“One thing I loved about UR was that we didn’t have to worry about guarding,” said Fowler. “Whereas a lot of the other robots in the market guarding was an issue because you’d have to use safety barriers for all the machines which just complicates the situation.”
The pay-offAccording to TCI, the company has been able to significantly reduce expenditure by using robots at a time when labour costs can be 10 to 20 times higher that of other overseas markets.
“We paid off the UR3 within six months, which means we can reinvest in further product development and innovation,” said Fowler. “We also saved around 75% on yearly product assembly labour costs for the UR3 and UR5.”
When asked what appealed to him the most about the UR3 and UR5 robots, Fowler pointed to their simple programming and consistency.
“The robots are easy to set up and reprogramming can take just a few minutes. However one of the biggest selling points for us is having that guarantee that the robots aren’t going to call in sick – production can go on 24/7 without us worrying about human related factors that might stop production.”
| An AMTIL release | January 11,2017 |
New Zealand make-at-home yogurt business EasiYo Products is looking to grow its business in Europe through a tie-up with Ireland-based dairy group Ornua.
An agreement between the two companies will see EasiYo's yogurt mixes made outside New Zealand for the first time.
Ornua will blend and pack its Irish dairy powders into EasiYo's mixes at its site in Leek in central England.
Brian Dewar, EasiYo's CEO, said: "The UK and EU markets represent a multi-million pound opportunity for us to capitalise on this growing consumer trend of people who love to make fresh wholesome food at home. Moving manufacture and supply closer to our key accounts means we can respond to our customers' needs much faster as well significantly improving our environmental footprint."
EasiYo sells its products through UK retailers including Holland & Barrett and Lakeland. Much of its distribution in Europe is through TV shopping channel QVC, although the brand does have listings in stores in Belgium. The company would not comment on whether it was targeting multiple retailers but does want to significantly increase its distribution. Its customers in New Zealand and Australia include major grocery chains Countdown, Woolworths and Coles.
Alastair Jackson, the managing director of Ornua Nutrition Ingredients, said the Irish company's manufacturing would "provide a strong platform for the production of EasiYo as it expands its presence in the UK and European marketplace".
| A just-food release | January 11, 2017 |
HNA Group bought Ingram Micro last year in a US$6 billion deal which closed in December and which makes Ingram Micro a subsidiary of HNA’s Tianjin Tianhai logistics, supply chain and financial services company.
HNA, which has a financial arm which operates a diverse set of businesses in equipment leasing, insurance and credit services, will pay $660 million for UDC Finance with the deal expected to close in the second half of 2017, subject to approvals.
UDC provides specialist asset-based finance to Kiwi businesses for plant, vehicles and equipment.
Adam Tan, HNA Group vice chairman and chief executive, says UDC’s highly diversified portfolio offers significant growth opportunities in Australasia and supports the company’s strategy of expanding its core tourism, logistics and financial services businesses.
David Hisco, ANZ New Zealand chief executive, says the sale followed a strategic review and was in line with ANZ’s strategy to simplify its business and focus on its core banking activities.
“UDC Finance is a great business which is performing well,” Hisco says.
“We’re extremely proud of what our teams have achieved over the years providing specialist asset-based finance to New Zealand businesses for plant, vehicles and equipment.
He says the purchase is a ‘significant’ vote of confidence in the New Zealand economy.
“HNA is well placed to invest in specialist asset finance products and systems which will help UDC expand further in the future.”
HNA will maintain UDC’s operations, with all existing staff retained and existing customer lending maintained.
HNA Group has been ramping up its presence in Australia and New Zealand in recent months. As well as the purchase of the Ingram Micro global business, it invested in Virgin Australia - to the tune of AU$159 million - in June.
| A ChannelLife release | January 11, 2017 |